QQQ vs RZG

QQQ vs RZG
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Quick Verdict

QQQ has a lower expense ratio. RZG delivered stronger 1-year returns. RZG offers more diversification with 129 holdings.

Lower Fees: QQQHigher Returns: RZGMore Diversified: RZG

Side-by-Side Comparison

MetricQQQRZGWinner
Expense Ratio0.18%0.35%
AUM$496.3B$138M
Dividend Yield0.44%0.44%
Holdings108129
YTD Return+16.19%+25.46%
1Y Return+25.22%+28.45%
3Y Return (annualized)+25.47%+18.37%
5Y Return (annualized)+14.34%+5.62%
Volatility (annualized)30.6%21.6%
Max Drawdown-83.0%-58.8%
Fund FamilyInvesco (US)Invesco (US)
CategoryEquityEquity
InceptionMar 10, 1999Mar 1, 2006

QQQ vs RZG Performance

Invesco QQQ Trust, Series 1 (QQQ) is a ETF from Invesco (US) and Invesco S&P Smallcap 600 Pure Growth ETF (RZG) is a ETF from Invesco (US). Over the past year QQQ returned +25.22% while RZG returned +28.45%. Year to date, QQQ is up 16.19% versus a gain of 25.46% for RZG.

Over three years, QQQ compounded at +25.47% per year against +18.37% for RZG; over five years the annualized figures are +14.34% and +5.62% respectively. Across the full 21-year window we track, QQQ has the edge at +13.01% annualized vs +8.81%. Past performance does not guarantee future results.

Risk: Volatility and Drawdowns

QQQ has been the more volatile fund, with annualized monthly volatility of 30.6% compared with 21.6% for RZG. Lower volatility generally means a smoother ride, though it often comes with lower long-run returns.

The deepest peak-to-trough decline in our data was -83.0% for QQQ and -58.8% for RZG. Drawdown depth is worth weighing if you expect to sell during market stress rather than ride it out.

The two funds' monthly returns correlate at 0.75. They usually move together, but the gap leaves some room for diversification.

Fees and Cost Over Time

QQQ charges 0.18% per year while RZG charges 0.35%. On a $10,000 position that is $18 vs $35 annually, a gap of $17 per year that compounds over a long holding period. On income, QQQ currently yields 0.44% against 0.44% for RZG.

Holdings Overlap

0.0%overlap

QQQ and RZG share 0 holdings out of 228 unique holdings combined, representing a 0.0% weight overlap.

Moderate overlap means holding both could provide meaningful diversification benefits.

Frequently Asked Questions

Which is cheaper, QQQ or RZG?

QQQ has an expense ratio of 0.18% while RZG charges 0.35%. QQQ is the cheaper option. On a $10,000 investment, that is $17 per year of difference.

Which performed better, QQQ or RZG?

Over the past year QQQ returned +25.22% vs +28.45% for RZG, so RZG leads on 1-year performance. Over the longest common window we track (21 years), QQQ annualized +13.01% vs +8.81% for RZG. Past performance does not guarantee future results.

Which is riskier, QQQ or RZG?

QQQ has been the more volatile fund at 30.6% annualized versus 21.6% for RZG. Worst drawdown: QQQ -83.0% vs RZG -58.8%.

Should I hold both QQQ and RZG?

QQQ and RZG have a monthly-return correlation of 0.75, so combining them can provide real diversification depending on your allocation goals.

What is the holdings overlap between QQQ and RZG?

QQQ and RZG share 0 common holdings with a 0.0% weight overlap. Combined, they hold 228 unique securities.

Which pays a higher dividend, QQQ or RZG?

QQQ yields 0.44% while RZG yields 0.44%, so QQQ currently pays the higher dividend yield.

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